Zepto Completes Cross-Border Merger with Singapore Affiliate By Elets News Network - 13 January 2025

Zepto

The National Company Law Tribunal (NCLT) has cleared the merger of Kiranakart Technologies, the Indian company behind quick commerce platform Zepto, with its Singapore-based affiliate, Kiranakart Pte Ltd. With this green light, Zepto now officially becomes an Indian company, with no objections to the cross-border union of the two entities.

Kiranakart Technologies runs Zepto in India, while its Singaporean holding company, Kiranakart PTE LTD, oversees operations globally. The tribunal’s order also means Zepto doesn’t need a no-objection certificate (NOC) from the Reserve Bank of India (RBI). Since the merger fits under Regulation 9 of the Cross-Border Merger Regulations, which provides for deemed RBI approval, there’s no extra paperwork on that front.


The NCLT noted that this move aligns Zepto with local regulatory frameworks, helps mitigate risks, and enables better management. It also emphasised the benefits for shareholders, including streamlined structures and cost efficiencies. The merger aims to simplify Zepto’s setup by cutting down the number of legal entities, which the company says will boost synergies, speed up decision-making, and trim expenses. In a nutshell, it’s about less red tape and more focus on business.

The Mumbai bench also pointed out that this restructuring could open doors for future investments from Indian and global backers. Additionally, Zepto is preparing for an initial public offering (IPO) in India, expected later this year. A simpler organisational chart, the tribunal suggested, might help grease the wheels for this big move.

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With plans to finalise its shift to India within 30 days, Zepto is joining a growing list of companies reversing their earlier decision to domicile abroad. Names like Eruditus, Razorpay, and Pine Labs are also in the queue. However, companies are treading carefully—cases like PhonePe’s, where tax bills hit $900 million, have highlighted the need for strategic planning.

The NCLT’s January 9 order described the merger as “fair and reasonable,” noting no legal violations or public policy concerns. Singaporean authorities have also approved the plan, so Zepto is cleared for takeoff on all fronts.

Zepto plans to file its IPO draft papers by March or April, aligning with its efforts to relocate its base. Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto operates under a B2B model. Its parent company, Kiranakart Technologies, sources goods directly from brands and sells them to its licensed distributors, which include Geddit Convenience and Commodum Groceries.

Last year, Zepto made waves by raising $1.3 billion in funding, outpacing rivals Blinkit and Swiggy Instamart in revenue. Now valued at nearly $1.4 billion, the quick commerce platform seems to be gearing up for its next big leap.

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